Pearson New International Edition International pcl tp indd 1

MANAGING FORECAST DATA
Objective 5
Introduce the
relationship between 
room demand forecasts 
and pricing, and note 
the need to evaluate the 
effectiveness of the 
demand forecasting 
process.
Objective 3
Explain how an FOM 
can use PMS data 
relating to transient 
and group guests to 
make room demand 
forecasts.
Objective 2
Discuss how 
historical, current, and 
future data help the 
FOM to estimate 
room demand.
Objective 4
Review the basic types 
of reports that FOMs 
can use to monitor and 
manage their guestroom 
demand forecasts.
Objective 1
Review the role and 
responsibilities of the 
FOM in the 
management of rooms 
forecast data.
Managing Occupancy 
Forecast Reports
Using Predictive 
Data Sources
Tracking Room 
Demand
The FOM as 
Forecaster
• Impact on Pricing 
• Evaluation of
Effectiveness
Other Forecasting 
Issues: 
ROADMAP 1
Careful study of a PMS’s forecast-related reports allows FOMs to adjust room rates accord-
ing to occupancy.
Jeff Greenberg/PhotoEdit Inc.
215

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MANAGING FORECAST DATA
Savvy FOMs continually monitor and adjust their room rates to reflect the real-
ities of actual room demand. Consider, for example, the data shown in a forecast of
room demand at the Altoona Hotel shown in Figure 1. For the first seven days in
January, the FOM at the Altoona Hotel has created an occupancy forecast that
ranges from a low of 30 percent on Sunday night to a high of 100 percent on Friday
and Saturday nights.